B.3 Explain how different distributional systems affect expenses (0–5%) Myhr & Markham (Chapter 3) Past Exam Problems • 03-7* List the traditional distributional systems of insurance and how expiration ownership affects the particular system. • 03-8* For each of the traditional distributional systems of insurance, identify why a company would utilize that type of system. • 04-19 (2 points) For each scenario depicted below, state which distribution system a new insurance company should select. Briefly explain your answer. a) (0.5 point) The company will write in a small geographical territory with high population density. b) (0.5 point) The company will write medium- to large-sized commercial lines business. c) (0.5 point) The company’s target customer are more interested in price than in service. d) (0.5 point) The company has limited funds and desires low initial fixed costs. • 05-32 (2 points)

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